Varadero

Location

The Varadero oil field is situated offshore, along the northern coast of Cuba. Specifically, it is located at coordinates 23.145, -81.33 (WGS 84).

Geology and Reservoirs

The Varadero field is part of the Cuban fold and thrust belt, which is characterized by fractured Upper Jurassic and Lower Cretaceous carbonate reservoirs. These reservoirs are structural traps that have been developed using vertical and extended-reach wells drilled from the shore.

Production and Reserves

• The Varadero oil field is currently in operation, with CUPET (Cuba's state oil company) as the operator and 100% owner.
• The field has an estimated 2 billion barrels of oil in place.
• As of 2017, the production from the Varadero West Oil Field was approximately 1.33 million barrels per year.

Historical Context

• Oil production in Cuba dates back to 1881, but the Varadero field was discovered and developed in the later part of the 20th century. Exploration and development activities gained momentum in the late 1960s with assistance from the USSR and Eastern Europe.
• The field has been a major contributor to Cuba's oil production, which currently stands at around 50,000 barrels per day of crude oil and 55 million cubic feet per day of associated natural gas.

Infrastructure

• The oil from the Varadero field is transported via a 75 km oil pipeline to processing facilities. Before the construction of this pipeline, oil was transported using other methods.

Exploration and Development

• The Varadero field is part of a larger hydrocarbon system that includes several other fields along the northern coast of Cuba. CUPET has been actively involved in exploring and developing these resources, including deeper water frontier plays.
• The Cuban government has opened the country's Exclusive Economic Zone (EEZ) to foreign companies for exploration and development, including the area around the Varadero field. This has led to production-sharing contracts with various international oil companies (IOCs) and national oil companies (NOCs).

Challenges and Future Prospects

• The geology of the area is complex, with reactive clays and varied stratigraphy, which poses technical challenges and increases the cost of drilling and production.
• Despite these challenges, the Cuban government and CUPET are focused on technology transfer and collaboration with foreign partners to improve oil and gas recovery from producing fields and to explore new areas, including deepwater regions.

In summary, the Varadero oil field is a crucial part of Cuba's oil and gas industry, with significant reserves and ongoing production. It is characterized by complex geology, and its development involves both domestic and international collaboration.